Developer Michael Beatty, in the news because of his city-subsidized plan to build a $255 million office complex for Exelon at Harbor Point, is trying to sell the only structure built to-date at the waterfront site – the Morgan Stanley building.

According to the Daily Record’s Melody Simmons, who broke the story this afternoon, the eight-story, glass-and-brick structure was recently listed for sale with real estate broker CBRE.

The ownership group for the building, whose major tenant is the financial services company Morgan Stanley, includes John Paterakis’ H&S Properties Development Corp. as well as Beatty.

The building, also known as Thames Street Wharf, is currently assessed at $55.8 million, but the city does not receive any value-added property taxes from the building because the funds are committed to pay off TIF bonds to be issued for Harbor Point.

Yesterday the city’s Finance Board approved the first tranche ($36 million) of the $106 million TIF financing package for Harbor Point, with Beatty pledging to buy the allotment through a private placement.

Knocking Downtown

The prospectus to potential buyers badmouths the value of Inner Harbor and central business district buildings, saying the traditional downtown cannot “realistically compete” with the Morgan Stanley Building. (Only the Legg Mason Tower, which Michael Beatty built at Harbor East, compares in value, the prospectus says.)

“Baltimore’s Central Business District has no buildings that can realistically compete with these assets, and the CBD has experienced limited growth over the past two decades. The result is tenants have very limited options for high quality assets that have large floor plates, state-of-the-art HVAC systems, security, amenities and adequate parking,” the prospectus reads.

Last week, T. Rowe Price rejected the entreaties of the Beatty Group and announced it would sign a long-term lease for its current facilities at 100 East Pratt St., in the heart of downtown.